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How to Start a Business in Massachusetts

How to register a business in Massachusetts and everything else it takes to open legally, in order — sole proprietor vs. LLC, the state filing, your EIN, tax registration, and licenses, with the official Massachusetts links for each step. Most people finish the core setup in one to three weeks.

LLC filing fee
~$500
Processing
1–2 business days online
Ongoing report
annual · ~$500
State sales tax
yes
State income tax
yes

  1. How to register a business in Massachusetts

    Sole proprietors under their own name file nothing with Massachusetts to exist — a DBA if you use a trade name, plus local licenses. To register an LLC or corporation you file formation paperwork with the Massachusetts business filing office (about $500, 1–2 business days online), then get a free EIN and register for state taxes.

    Massachusetts business registration ↗

  2. Pick a structure (sole proprietor or LLC)

    Most Massachusetts owners start as a sole proprietor (free, no filing) or form an LLC for liability protection. The LLC filing fee is about $500, and formation typically takes about 1–2 business days online. Confirm the current fee on the state site before you pay.

    Massachusetts business filing office ↗

  3. Name a registered agent

    If you form an LLC or corporation, Massachusetts needs a registered agent with a physical in-state address. You can be your own agent if you're available during business hours, or hire a service for about $100–$150/year.

  4. Get your EIN from the IRS

    An Employer Identification Number is free from the IRS and takes a few minutes online. You need it to open a business bank account and to hire.

    IRS — Apply for an EIN ↗

  5. Register for Massachusetts taxes

    Massachusetts has a state sales/use tax and has a state income tax. Massachusetts is expensive for LLCs — $500 to form and $500 every year for the annual report.

    Massachusetts tax registration ↗

  6. Confirm local licenses and permits

    Massachusetts rarely issues a single statewide "business license" — most licensing is by city or county, plus profession-specific licenses. Check your city and your trade.

    Massachusetts professional licensing ↗

  7. Open a business bank account and get insurance

    Keep business and personal money separate from day one. General liability insurance is the baseline; some contracts also require a bond.

  8. Put the ongoing report on your calendar

    Massachusetts requires an annual report (about $500).

    Massachusetts reports ↗

Start your business in Massachusetts

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Frequently asked

How do I register a business in Massachusetts?

Sole proprietors under their own name file nothing with Massachusetts to exist — a DBA if you use a trade name, plus local licenses. To register an LLC or corporation you file formation paperwork with the Massachusetts business filing office (about $500, 1–2 business days online), then get a free EIN and register for state taxes.

How much does it cost to register a business in Massachusetts?

Registering as a sole proprietor is free (a DBA filing, if you use a trade name, is usually $10–$50 at the county or state). Registering an LLC costs about $500 in Massachusetts, plus an annual report (~$500). An EIN from the IRS is free.

How much does it cost to start an LLC in Massachusetts?

The state filing fee is about $500. Beyond that, budget for a registered agent if you hire one (~$100–$150/year), the annual report (~$500), and any local license fees. An EIN is free.

Do I need an LLC to start a business in Massachusetts?

No. You can operate as a sole proprietor in Massachusetts with no state filing. An LLC adds a layer of personal liability protection and can make you look more established to customers and lenders — it's a judgment call based on your risk and goals, not a legal requirement.

How long does it take to form an LLC in Massachusetts?

Standard processing is about 1–2 business days online. Many states offer paid expedited options.

Does Massachusetts have a sales tax?

Yes. If your product or service is taxable in Massachusetts, you must register with the state tax agency before you collect tax. Many services are not taxable — confirm on the official site.

What ongoing filings does a Massachusetts LLC have?

Massachusetts requires an annual report (about $500).

Official sources

Fees and timelines are commonly-cited figures last reviewed September 2026 and can change — always confirm on the official site. This is educational information, not legal or tax advice.

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AI-generated guidance is for educational purposes only and is not legal, tax, or investment advice. Disclosures · Trust center